AD Ports Group has announced the merger of Kezad Communities with Al Eskan Al Jamae (EAJ), a leading staff accommodation owner and operator in Abu Dhabi, to create a AED7 billion ($1.91 billion) integrated staff accommodation company, which is Abu Dhabi’s largest.
Kezad Communities is part of Khalifa Economic Zones Abu Dhabi under AD Ports Group’s Economic Cities & Free Zones. Its business dates back to 2005 and was operated previously under ZonesCorp.
Following the merger transaction, AD Ports Group will retain a controlling majority stake in the company.
EAJ is a real estate development and management company that owns and operates ICAD Residential City in Mussafah, Abu Dhabi.
The residential city has 58,000 beds along with recreational amenities such as restaurants and a mall. EAJ also operates several fully owned subsidiaries offering support services, including Khadamat, a facilities management company, EJRC, a property management company, and Your Laundry.
This transaction would be effected through an equity share swap with no cash exchange.
AD Ports said that following the merger, Kezad Communities will be the largest staff accommodation company in Abu Dhabi with owned and managed capacity of 135,000 beds.
The combined entity will enable Kezad Group to provide customers with integrated staff accommodation solutions comprising amenities and facilities (medical centres, gardens, sports areas, dining halls, and mosques) and services (supermarket and laundry).
Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group said Kezad continues to look for opportunities to leverage its assets and fully support the growth of priority industrial sectors.
"This merger with EAJ significantly expands the number of staff accommodation assets under our control and extends the range of support services we can offer to our customers," he stated.
“The merger enhances Kezad Communities’ staff accommodation business and provides an opportunity to enhance the quality and sustainability of staff communities across the UAE. We look forward to continuing the development of services in this critical market and contributing to the wider national goal of economic diversification,” he added.
Dr Saeed Khalfan Al Kaabi, the chief executive of EAJ, pointed out that Kezad Communities had made significant strides to reshape the staff accommodation market.
"EAJ has pioneered a progressive and sustainable approach to the delivery of much-needed group housing development in Abu Dhabi and across the UAE, and this legacy will be extended through the expertise, resources, and reach of Kezad Group moving forward,” he added.-TradeArabia News Service